The Value of Irrevocable Trusts

On the surface, an irrevocable trust speaks for itself: it is a trust that you cannot revoke or dissolve after it has been created. For the most part, this is true, and you may not feel very comfortable about the prospect of surrendering control over your assets. At the same time, irrevocable trusts can be used to satisfy some important estate planning objectives. For example, there is the matter of taxation. There is a federal estate tax that can be a source of asset erosion for people who have been able to accumulate a significant store of wealth. It is only a factor for high net worth people, because there is a credit or exclusion that you can used to transfer a certain amount tax-free. For the rest of 2016, the amount of this exclusion is $5.45 million. Only the portion of an estate that exceeds this amount would be subject to the death tax. Inflation adjustments are applied each year when circumstances warrant an adjustment, so don t be surprised if you see a slightly higher figu


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